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Business Life Insurance
Business Life Insurance
Use Life Insurance & Annuities to Meet Business Needs
The companies of OneAmerica® can structure life insurance policies and annuities to meet specific business needs. Use these life insurance strategies to protect your business from the sudden loss of a key employee or to help retain top talent with financial rewards and incentives.
- Establish Key Person Protection — As a business, you can purchase life insurance that provides the company with tax-free dollars to help replace or otherwise recover from the loss of an employee who has special skills or provides significant contributions.
- Defer Compensation — Avoid the restrictions of qualified retirement plans so you can motivate and reward top talent. A non-qualified deferred compensation plan sets aside some of an employee’s taxable income until retirement.
- Build Retirement Income — Use a flexible retirement vehicle, such as a Simplified Employee Pension (SEP) or any other retirement plan structure, that features minimal administrative requirements and tax advantages.
- Protect the Future — When your business funds a buy-sell agreement with sufficient life insurance, it won’t have an adverse impact on working capital or the credit position of the business.
Talk to Your Financial Professional
A financial professional can help you and your business with particular applications of life insurance and annuities. Learn how they may fit into your business’s overall financial strategy or your personal retirement preparations.
In addition to supporting your financial professional, we have kept promises to customers like you for more than a century. Our guiding values motivate us to put your long-term financial security ahead of our short-term profits.
As your personal situations change (i.e., marriage, birth of a child or job promotion), so will your life insurance needs. Care should be taken to ensure this product is suitable for your long-term life insurance needs. You should weigh any associated costs before making a purchase. Life insurance has fees and charges associated with it that include costs of insurance that vary with such characteristics of the insured as gender, health and age, and has additional charges for riders that customize a policy to fit your individual needs.
Throughout this material, the term life insurance is used. Please know that this term implies:
• The contract actually qualifies as life insurance according to Internal Revenue Code (IRC) Section 7702
• The contract is not a modified endowment contract, or MEC, as defined in IRC Section 7702A
• If it meets all of the requirements of Section 7702A, most of the distributions from your policy will be taxed on a first-in/first-out basis
• If you choose to take loans or partial withdrawals, the death benefit payable to your beneficiaries will be reduced - Surrender charges may apply to your partial withdrawals
• If the policy is a MEC, any distributions you take from your policy will generally be taxable -- and subject to a 10 percent tax penalty if you have not yet attained age 59½.
If a life insurance policy lapses with loans outstanding, the loan amount becomes subject immediately to federal income tax and if the insured is under age 59 ½, they may be subject to an additional 10 percent tax penalty.
Neither AUL, OneAmerica Securities, Inc. nor their representatives provide tax or legal advice. For answers to your specific questions please consult a qualified attorney or tax advisor.